Welcome to the first quarter 2023 ICF earnings conference call. My name is Grace. I will be your operator for today's call. At this time, all participants are in a listen-only mode. Afterwards, you'll be invited to participate in the question-and-answer session. During the question-and-answer session, you will have a question. P lease press star and then one one on your touchtone phone. I will now turn the call over to Lynn Morgen of AdvisIRy Partners. Lynn, you may begin. Thank you, operator. Good afternoon, everyone, and thank you for joining us to review ICF's first quarter 2023 performance. With us today from ICF are John Wasson, Chair and CEO, and Barry Broadus, CFO. Joining them is James Morgan, Chief Operating Officer. During this conference call, we will make forward-looking statements to assist you in understanding ICF management's expectations about our future performance. These statements are subject to a number of risks that could cause actual events and results to differ materially. I refer you to our May 9, 2023, press release and our SEC filings for discussions of those risks. In addition, our statements during this call are based on our views as of today. We anticipate that future developments will cause our views to change. Please consider the information presented in that light. We may at some point elect to update the forward-looking statements made today, but specifically disclaim any obligation to do so. I will now turn over the call to ICF CEO, John Wasson, to discuss first quarter 2023 performance. John? Thanks, Lynn. Good afternoon, everyone. Thank you for joining us to review ICF's first quarter results and discuss our outlook for 2023. Our strong first quarter results reflected ICF's expanded capabilities in the growth markets we have identified and have invested in, namely IT modernization, public health, disaster management, utility consulting, and climate, environment, and infrastructure services. These areas are priority spending for our clients, and in 2022, accounted for approximately 75% of revenue. Thanks to our deep domain expertise and increased scale, we expect these areas to continue to grow as a percentage of ICF's revenue in 2023 and beyond. In terms of takeaways from our performance in the quarter, first, we reported over 15% growth in service revenue, and total revenue increased close to 17%, of which organic growth was north of 8%. Second, we achieved significant year-on-year margin expansion in the first quarter, primarily resulting from increased scale, higher utilization levels, and reduced facility costs. This margin expansion is aligned with our guidance of 15% Adjusted EBITDA to service revenue margin for the full year. Third, we made the decision to exit a small non-core commercial U.K. event service line that was not contributing to profitability. While immaterial from a revenue perspective, it is indicative of our strategy to focus our investment dollars and human capital on areas that are or have the potential to drive growth and are synergistic with the rest of our service offerings. Fourth, this is another quarter of strong contract awards for ICF, up over 13% year-on-year and resulting in a trailing 12-month book-to-bill ratio of 1.3. Our business development pipeline increased 16% sequentially after more than $400 million in contract wins, which speaks to the high level of bid and proposal activity we are experiencing, as well as the increased value of the contracts we're bidding on. Taken together, these accomplishments represent a strong start to the year and underscore our confidence in ICF's performance in 2023 and beyond. Looking across our client categories, there are several highlights worth noting. Revenues from federal government clients increased over 22%, reflecting a combination of high single-digit organic growth and the contribution from the SemanticBits acquisition, which we closed in July of last year. Our IT modernization and public health markets were key drivers of first- quarter growth in this client category, reflecting strong spending trends amongst our civilian agency clients. Both areas have been seeing robust funding and bipartisan support. A recent Bloomberg analysis cited IT contract spending at federal agencies is forecasted to be a record of $78 billion for 2023, with about 40% of that spend taking place in the fourth quarter. The analysis noted that civilian agency procurement is continuing a pattern of steady annual growth not seen since at least 2017. Federal agencies are prioritizing customer experience and digital services along with data access and use, which are directly in our sweet spots. The integration of SemanticBits is complete. In the first quarter, we continued to win additional business from existing clients. We are working together on many potential revenue synergies, primarily at the Centers for Medicare & Medicaid Services, an agency that SemanticBits has served for many years. As mentioned previously, this was a strong quarter for our public health work. In the first quarter, we continued to execute on a number of contracts supporting federal agency efforts to address mental health, substance abuse, infectious disease, and global health security. We also worked on issues related to health equity, social determinants of health, and the future of the public health system. Adjacent to this work was the first quarter ramp-up of a new contract for the Administration for Children and Families, Office of Refugee Resettlement, to assist arriving Afghan refugees in getting access to immigration and legal services. We continue to experience demand from federal clients for ICF services with respect to the Infrastructure Investment and Jobs Act. Under existing federal agency contracts, we've been tasked with more than $45 million in projects to support IIJA activities. ICF is providing a range of support agencies, including digital modernization, technical assistance, and communications and management support for IIJA programs. ICF is seeing considerable interest from states and other prospective IIJA funding recipients for a range of environmental support services, including planning and analytical services. Our pipeline of opportunities containing IIJA and Inflation Reduction Act, or IRA-related work, continues to grow and is currently at approximately $250 million, up from $150 million at the end of 2022. This includes a modest amount of work related to the IRA, where we expect to see awards to support federal agencies' responsibilities under the act late in the second half of this year. In the first quarter, our revenues from state and local government clients increased 13.3% year-on-year. It's two key business areas, disaster management, environment, and infrastructure consulting, that executed effectively on existing contracts and continued to win new work. In particular, we noted in our release the award of a new contract with a value of $25.9 million with the U.S. territory to support the implementation of its new energy program that will provide eligible households with renewable energy installations in case of an extended power outage. We continue to win smaller strategic resilience advisory work in these jurisdictions and with new clients in current geographies. We're currently arguing mitigation advisory work for 30-plus clients across 17 states and three territories, which enables us to build relationships in key markets and to position for downstream implementation and recovery work. There are significant synergies between our disaster recovery and mitigation work and the resilience and energy-related work we do for state and local and commercial clients. In Q1, we continue to see these synergies pay off with good-sized wins with critical infrastructure clients in Oregon and California. This is a good segue to our commercial energy business, where revenues increased almost 19% in the quarter, with each component of this business posting strong double-digit growth. Our commercial utility program revenue growth was driven by two large energy efficiency projects, the addition of several new marquee clients, as well as the expansion of projects for existing utility clients. We saw particular strength coming from our innovative offerings related to electrification and grid modernization, behavioral efficiency programs, and dynamic pricing. In energy advisory, we experienced strong demand for our services in the areas of decarbonizing energy markets, and in particular, demand from renewable energy developers whose business is supported by the IIJA and IRA. We recently introduced Energy Insight, ICF's technology-enabled service, helping developers identify and analyze renewable project locations and a new power price forecasting subscription service, and both have been met with favorable client response. Our environment and planning work grew substantially in the first quarter, led by energy sector-related projects, as well as the Blanton acquisition and the general ramping up of environmental projects. Growth in energy projects was strong both for developers seeking to permit new onshore and offshore projects, and for utilities seeking environmental permits for large infrastructure, reliability, and resilience projects, such as the undergrounding of power lines. To sum up, the first quarter was a period of excellent execution for ICF in which we made significant progress in tiers that support our full- year 2023 guidance as well as our longer-term financial targets. Now I'll turn the call over to our CFO, Barry Broadus, for a financial review. Barry? Thank you, John. Good afternoon, everyone. In the first quarter of 2023, our total revenues were $483.3 million, up 16.9% as compared to the same period last year. This represented a balanced contribution from organic and acquisition growth. We benefited from broad-based revenue increases from our government clients, up 16.3% year-over-year, and revenues from our commercial clients, which increased 18.8% as compared to the first quarter of last year. Service revenue grew 15.3% to $351.3 million. Our first quarter total revenue benefited from a one-time media buy pass-through of approximately $6 million. Even after adjusting for this, our year-on-year growth in total revenue was firmly in the double-digit range at over 15%. Pass-through revenue for the first quarter accounted for 27.3% of total revenue, as compared to 26.3% in the first quarter of 2022. Gross margin was 35.3% of total revenue and 48.6% of service revenue, as compared to 37.6% and 51% in last year's first quarter, respectively. The year-over-year variance has mainly reflected a combination of factors, which included the timing of revenue recognition on fixed price contracts and energy incentive fees. The SemanticBits acquisition, similar to our Creative acquisition, generates a lower gross margin but higher EBITDA margin than we typically experience. As a percentage of service revenue, our indirect and selling expenses on an adjusted basis declined to 33.9% of service revenue, 320 basis points below last year's levels as we continue to benefit from higher revenue, greater scale, and reduced facility-related expenses. In absolute dollars, indirect and selling expenses increased 5.3% year-over-year, reflecting our ongoing investments in people and technology to support our long-term growth initiatives. Interest expense was $9.5 million as a result of higher debt balances and higher interest rates as compared to last year. As I mentioned on our last call, we have implemented a number of initiatives as an offset to our higher interest expense, including reducing our facility costs, prioritizing high utilization, managing our other non-direct billable expenses, and executing on our tax efficiency strategies, which will manifest in the second half of this year. Our strong service revenue growth, together with the initiatives I just mentioned and economies of scale, drove a 24.1% increase in EBITDA to $46.4 million and a 21.8% increase in Adjusted EBITDA to $51 million. We're also pleased to report our Adjusted EBITDA margin on service revenue of 14.5%, representing an 80 basis point improvement over the 13.7% reported in the year ago quarter. Net income totaled $16.4 million. Diluted EPS was $0.87 per share in the first quarter, inclusive of $33.5 million or $0.18 of tax-affected special charges. Of this, approximately $0.09 represented charges associated with the company's decision to discontinue its small non-core commercial UK event service line. The remainder represented severance, acquisition-related expenses, and facility consolidation costs. While we may have other opportunities on the horizon to further reduce our facility costs, they would be substantially less than what we incurred in 2022. Our first quarter net income compares to the $17.9 million and $0.94 per share in the first quarter last year, inclusive of $0.17 of tax-affected special charges. Non-GAAP EPS increased 8.4% to $1.42 per share from the $1.31 per share reported in the first quarter of 2022. Moving to the cash flow statement and the balance sheet. We used $17 million of operating cash for working capital needs in the first quarter of this year, which is in line with our historical trends and our increased scale. Capital expenditures totaled $6.4 million, essentially the same as the period a year ago. Days sales outstanding for the quarter improved to 71 days compared to 79 days in last year's first quarter as a result of our cash management initiatives. Our debt at the end of March was $598 million, as compared to $556 million of debt at the end of 2022. This increase was driven by the cash seasonally required in the first quarter for year-end bonuses, stock repurchases, as well as the timing of an extra payroll cycle this quarter. Our adjusted leverage ratio was 2.98 at quarter end, compared to 2.86 at year-end. Approximately 50% of our total debt is at a fixed rate. Consistent with our capital allocation strategy, we plan to focus on debt reduction as well as paying dividends, repurchasing shares to offset the impact of employee incentive programs, and making smaller opportunistic acquisitions. In the first quarter, the company used $18.1 million to repurchase 180,000 shares, which is sufficient to entirely offset the forecast of 2023 dilution. We still have $93.7 million remaining under the current authorization plan. We also announced today a quarterly cash dividend of $0.14 per share, payable on July 14, 2023, to shareholders of record on June 9, 2023. Now, to help you with your financial models, there are a few important metrics that are unchanged from our guidance in early March. Our depreciation and amortization expense is expected to range from $23 million-$25 million. Amortization of intangibles should be approximately $36 million. Interest expense will range from $32 million-$34 million. Our full- year tax rate will be approximately 23.5%. Our operating cash flow is projected to be $150 million. We expect our fully diluted weighted average share count to be approximately 19.1 million, and our capital expenditures are anticipated to be between $26 million and $28 million. You may have also noticed that we have streamlined our total revenue breakout by market, aggregating smaller end markets under the category of security and other civilian and commercial markets. With that, I will turn the call back over to John for his closing remarks. Thank you, Barry. We are very pleased with our first quarter results. The strong award and pipeline growth we continue to achieve are a clear demonstration of how well aligned ICF's capabilities are with client spending priorities. We are pleased to reaffirm our guidance for 2023, which represents substantial year-on-year growth across key financial metrics. ICF has the capabilities and the scale to capture the considerable growth opportunities on the horizon. We will continue to make the requisite investments in people and technologies to build upon our competitive advantages and expand our addressable market. While doing so, we'll remain mindful of maintaining the collaborative culture we are known for and continue to advance the positive impact that our work has on society. Operator, I'd like to now open the call to questions. Thank you. At this time, we will conduct the question-and-answer session. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from Joe Vafi at Canaccord Genuity. You are alive. Hey guys, good afternoon. Nice results. Thanks for taking the questions. I thought maybe we just kinda first go back to your comments, John Wasson, on the IIJA and the IRA pipeline growing, but sounds like it's mostly IIJA in the pipeline growth at this point and not IRA. Do you expect to see that the IRA contribute more to that kinda combined pipeline over the next few quarters? Then I have a couple follow-ups. Sure. Certainly your comment is correct that IIJA represents, you know, we discussed both the sales, the vast majority of the sales and a significant portion of the pipeline. I would expect that IIJA will remain certainly the majority, if not the significant majority for this year. I think as we've talked about, you know, Joe, I think the IRA really is. I think we'll expect to see the pipeline begin to ramp up late in the second half of the year and have it be much more 2024 and 2025 play. I do think the IRA does provide significant upside for us. It's just it'll be in the outer years. Certainly for this year we'll see more opportunity from the IIJA given the funding's further along, and so is coming, you know, contributing to the pipeline, more in the short run. Sure. Thanks for that. In the commercial area, especially in energy, you know, maybe you could kinda give us a more detailed breakdown. You know, I know historically you've done a lot with the utilities themselves, but the business is diversifying. Sounds like you're doing a lot more with alternative and, you know, green power producers. You know, Can we get a feel for, you know, how big, you know, the overall business is, you know, outside of the core utilities and how you see that market shaping up for these kinda newer entrants? Sure, Joe. I think, you know, I'd say a couple of things. I mean, I think we talked about it in our Investor Day a year ago, and I think it's still true. Certainly, the vast majority of the business is focused on energy efficiency, 75%-80% of the business, which as, you know, I mentioned in my remarks, we've had some good wins here in the last quarter. We continue to see growth there in kind of the mid to high single- digit range, you know. Having said that, you know, some of the newer opportunities around decarbonization, electrification, flexible load management, equity-related things, you know, that 15%-20% of the business, I think, provides in the long run much higher potential growth areas, double-digit growth areas. We are seeing some signs of that certainly in the decarbonization/electrification front you mentioned. We're seeing a lot of opportunity working with developers on the renewable, you know, solar and wind resources. We're seeing opportunities around decarbonization. While that portion of the business is smaller, it's growing more rapidly, and I would expect in the long run that, you know, we'll see a larger and more portion of the business in those newer areas and, you know, we'll continue to accelerate the growth rate for our energy business. I would also say that, you know, we had quite a nice first quarter with our environment and planning business, which does do some of the environmental work for, on solar and wind, but is also working on broader infrastructure projects. We've had nice growth there. You know, to be honest with you, we're quite pleased, you know, that basically every quarter of our energy business grew double digits in the first quarter and, you know, it gives us a very positive and bullish outlook on that business. Thanks for the update, and nice start to the year, guys. Yeah. Thanks, Joe. Appreciate it. One moment for our next question. Our next question comes from the line of Tobey Sommer with Truist Securities. You are alive. Hey, all. This is Jack Wilson on for Toby. I just wanted to ask a quick one. Can you speak to headcount growth and hiring in 1 Q? Sure. You know, I think that as we've discussed on prior calls, I mean, at the highest level, we are a professional services firm. If we're gonna be growing, as I said, 8% organically, in the quarter, then, on an annualized basis, we need to be adding, 6%-7% headcount, to deliver that growth. We always look to squeeze a little more efficiency, a little more utilization out of our existing staff. We're certainly in a mode where we're adding headcount. As I say, I would expect it to be in the 6%-7% range with our 8% organic growth. Obviously, we also did the SemanticBits acquisition last year, which brought additional headcount from a non-organic perspective. I think that's how we think about the headcount. You know, we are, as I said before, we're investing quite significantly in recruiting, and, you know, generally have been successful in attracting the talent, and adding the headcount. You know, feel generally good that we'll be able to add the staff and add the capabilities to achieve our growth goals. Okay. Okay. Thank you. I'm shifting gears a little bit. Is there an opportunity for ICFI in the PFAS mitigation space? I'm sorry, You said mitigation what space? I'm sorry, I missed that. I said, PFAS mitigation space. I'm not sure I know what PFAS is. I mean, we do a significant amount of mitigation work on, you know, disaster recovery and mitigation work on climate change. You know, for all of our clients across, kind of from, you know, federal to state or local to commercial, you know, we do both mitigation and resilience work. We have significant deep expertise on that. The specific reference you're making, I'm not sure I'm familiar with. Yeah. Sorry. I'm simply referencing polyfluoroalkyl substances, the EPA. I know it's making sort of putting some emphasis on that. Yeah, I'm not... I mean, we do significant work for EPA, but I'm just not familiar with it. It's something we can certainly get back to you on. Okay. Jeff, I don't know the details of what ICF may be doing there. Okay. Thank you for taking my questions. I'll turn it over. As a reminder, to ask a question, you will need to press star one one on your telephone. One moment for our next question. Our next question comes from Kevin Steinke with Barrington Research Associates. You are live. Thank you. Good afternoon. Just wanted to ask about your state and local government business. You had a nice sequential pickup in revenue there. Just wondering the sort of opportunities you're seeing both on the disaster recovery side, what more could be in the pipeline as well as on the mitigation side of things. Sure. You know, I think, as you note, I mean, we had quite nice, you know, growth in our state and local businesses. I would say, as you know, Kevin, those are made up of two key components, our disaster recovery business and then our environment and planning business. If there's environmental work in front of large infrastructure process for state and local governments. We saw robust growth in both those businesses. I would say the pipelines remain quite good on the disaster recovery side. You know, we continue to see opportunities, certainly on the mitigation front, you know, across multiple geographies. We're doing. We have a nice pipeline in Puerto Rico. You know, we certainly are busy in Texas. As I mentioned, we're working with over 30 states on the kind of mitigation advisory work. You know, I think that's an area that's, you know, received strong funding and, you know, we continue to build the pipeline there. In addition to continuing to do our traditional disaster recovery workloads, again, I think, we have opportunities in Puerto Rico. We have opportunities, you know, in the Gulf Coast area. We see opportunities in Texas. You know, so the business in the pipeline there is quite strong. On the environment and planning side, you know, I think again, given the focus on investment in infrastructure around the IIJA, and clean energy technologies and energy, and energy technologies generally, you know, pipelines, power lines. I think with the pipeline has been building, you know, quite nicely there. We're, you know, quite positive on the trends in the pipeline in those areas and the future opportunities for us. Thank you. Just in terms of the international government business, I think you had been cautiously optimistic about the pipeline there and perhaps that, you know, business picking up as we move forward. I mean, what's any update on just trends in international government? You know, I think we've generally, you know, indicated that, you know, we thought that, for 2023, that international government business should return to growth. I think we're thinking kind of low to mid-single digit growth there. I think for the last year, we've obviously had some difficult comps. We were rolling off a large implementation project we did in 2021 and early 2022. We rolled off of that at the end of this, you know, first quarter. I think as we go forward, we believe that business should return to growth in the low to mid-single digit range, you know, as we go forward. Okay, thanks. Then, you know, obviously spoke to the IT modernization opportunity and a lot of momentum there. You know, I believe you've mentioned before that you have, I think, the capabilities in place to address that opportunity, but just wondering as this opportunity continues to grow and evolve, if there are any other pieces that you need to add to the mix in terms of your, you know, your service capabilities, specifically when thinking about M&A? Yeah, sure. You know, I think as we've discussed in the, you know, in recent quarters, I think we feel like we have the core of what we need to address, you know, generally address the IT modernization market in the federal arena. As you know, we've made three significant acquisitions in the last two or three years that have given us kind of a full range of low-code capabilities. With the Semantic Bits acquisition, you know, gave us the open source capabilities to address that market. I think we have the core of what we need, Kevin. Having said that, as you know, that market is constantly evolving, and there's constantly new entrants and new platforms and new capabilities. You know, I, as you know, we're always out looking at potential acquisitions. I would think we would do more to the extent that we do acquisitions in the IT modernization world, they'll probably be more, you know, small to medium-sized acquisitions that bring either new platforms that are coming on the market where we feel we need skills or add capabilities around things like artificial intelligence or data and analytics or machine learning, you know, which, you know, are important and are in the news a lot. I would think of it more as tuck-in acquisitions as opposed to kind of large significant acquisitions to just to give its critical scale or critical mass in that market. I feel like we have the critical mass and the key kind of capabilities we need to address, you know, that market effectively. Okay. Just lastly, you know, I don't know if this is, it's out of your control obviously, but just any thoughts on the negotiations going on around the debt ceiling and if that's, you know, something investors should even have in mind. I mean, these things typically get resolved, but just wondering if you could offer up any thoughts on that. Yeah, Kevin, I'm not sure I have any great insights into how the, you know, the debt ceiling and how it will resolve it. I mean, it's not the first time we've had this issue. You know, I mean, obviously, we're watching it carefully. You know, I think if history is any guide, you know, there could be some bumpiness or turbulence here in the next month as that issue gets worked through. I would, you know, you know, I would ultimately expect it to be resolved. Generally, the headlines and the risk you read, you know, in the headlines tends to be much greater than the risk ultimately when they work out the deal. We're watching it carefully. Ultimately, I would expect it to get worked out. You know, ultimately for us, I do think, you know, the Depending on where that lens lands in terms of impact on the budget, to the extent that the budget is impacted, I just would note that some of the areas we're really focused on in federal markets, you know, public health and health issues, IT modernization, you know, tend to have been very high priorities across both Republican and Democratic administrations. I would expect that in terms of our key growth markets, many of those will be remain high priorities and wouldn't be the first place that, you know, cuts would occur. You know, and so I think that's how we're looking at it. Obviously, we're watching it carefully. You know, I think the good news is obviously the last two years, 2022 and 2023, the civilian budgets for us, you know, materially we have very good momentum. We have very good backlog. You know, we feel good about that, but we're certainly watching it very carefully. Okay, thanks. That's helpful commentary. I'll turn it over. Thanks for taking the questions. I would now like to turn it back to John for closing remarks. Thank you all for participating in today's call. We look forward to connecting at upcoming conferences and events. Thanks for participating today. Take care. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.